Li Zhongxin knows better than anyone that Hong Kong has been developing rapidly. In the 1990s, Hong Kong had a great influence on the world. For example, Hong Kong's music and movies were among the best in the world at that time, not much worse than the United States. And as one of the four Asian little dragons, Hong Kong had a great influence on world finance.

The reason why Hong Kong is called the Four Little Dragons is because from the late 1960s to the 1990s, the four rapidly developing economies in Asia were South Korea, Taiwan, Hong Kong and Singapore. Because of their rapid development, they are called the Four Little Dragons in Asia by many people in the world.

Before the 1970s, the four Asian dragons were dominated by agriculture and light industry, and their economic development was rapid from the 1970s to the 1990s. They took advantage of the opportunity of developed countries to transfer labor-intensive industries to developing countries, attracted a large amount of foreign capital and technology, took advantage of the local cheap and good labor advantages, and timely adjusted their economic development strategies and developed rapidly, becoming a developed country and region in Asia after Japan.

It is precisely for this reason that Hong Kong is a must-fight for both the UK and the China side. Even if Hong Kong returned to China in 1997, the British powers and some unwilling people did not want to give up Hong Kong's big fat piece easily.

Li Zhongxin did not have much thought about Hong Kong, which has been confirmed to return. He didn't need anything. Hong Kong could return safely and normally. Imperialism is just a paper tiger, so he doesn't have to worry about anything. At this time, Li Zhongxin just intentionally intervened in the stock market in Hong Kong.

From a historical perspective, Hong Kong's stock market has a long history in Asia.

Li Zhongxin has read a lot of information, and he knows in his heart that the stock trading in Hong Kong can be traced back to 1860. Early British merchants established a joint venture in Hong Kong, and their stock transfers were made in the form of private transactions and matched through intermediaries.

In 1891, the Hong Kong Brokerage Association was officially established, and in 1914, the association was renamed the Hong Kong Stock Exchange. Most of the early transactions were reached on the streets of Xuechang Street, and brokers communicated information, including the amount of goods, the price, etc., and then the broker would take a rickshaw to contact investors (rich guys) for negotiation.

The pace was very slow at that time, and there were not many transactions, mainly British companies such as HSBC, Land, Kowloon, Hong Kong Lights, Gas, Trams, Swire Dock, Huangpu Dock and Junyi Warehouse.

After China's liberation in 1949, some brokers on the Shanghai Stock Exchange were transferred to Hong Kong, bringing talents and funds. If listed companies such as Hui Defeng also moved to Hong Kong for listing, the Hong Kong stock market became active for a time.

Before liberation, Jardine's main business was concentrated in the Yangtze River Delta Basin. After liberation, the investment in trade and schief mill business in China lost all its money. Fortunately, there were still many investments in Hong Kong: such as Land and Kowloon Warehouse.

After rest and recuperation, Jardine Holdings was listed in Hong Kong in 1961 and issued 900,000 shares at 16 yuan per share. At that time, it exceeded the subscription by 56 times, and the opening price was 31.25 yuan.

In 1965, a bank swelling occurred in Hong Kong, and Jardine Mahjong's stock price fell below the listing price, only 12 yuan. In 1967, a riot occurred in Hong Kong, and the Hong Kong Stock Exchange was suspended twice, each time lasting 10 days.

At that time, because there was only selling and no buying, no transaction could be reached. However, the bank required the broker to put the selling price higher as much as possible when placing a selling order. The bank used the selling price to value it and minimize the occurrence of "cutting positions".

In the 1960s, there were only dozens of stocks listed in Hong Kong, and only a few dozen brokers, and the transactions were very sparse.

In the 1970s, Hong Kong stocks began to become popular, and the Far East Exchange was established in December 1969; the Gold and Silver Exchange was established in 1971; the Kowloon Exchange was established in 1972. After the establishment of the 4th Institute of the Kowloon Exchange, it added many members and increased the participation of citizens.

At that time, the minimum consumption was about HK$10,000. The transaction had to be placed on the broker's errands. These errands used their own assets to guarantee their clients, and then they could trade through brokers.

In 1969, real estate gradually recovered from the riot in 1967. Foreign funds were eyeing each other. At the end of 1969, American consortiums invested in the Sheraton Hotel in Tsim Sha Tsui, which stimulated the real estate market. Small investors also recovered their confidence. The stock market was considered to be a product that was easy to cash out. It was difficult to buy and sell buildings during the riot. In order to preserve value, funds poured into the stock market to form a wave of Hong Kong stock market frenzy, which made British brokerage banks pay attention to the Hong Kong stock market.

In 1971, Vigoda and Kamae and his son arrived in Hong Kong first to buy and sell Hong Kong securities for foreign funds. Throughout the 1970s, more and more British brokerage firms came to Hong Kong, with more than a dozen companies at peak.

This situation changed a lot in the mid-1980s. The British financial industry underwent major reforms in 1986, allowing foreign banks to acquire British brokerage banks and financial institutions.

By the late 1980s, these more than ten British brokerage banks with branches in Hong Kong were also successively engulfed by British, European and American banks or investment banks. After a series of acquisitions, the local securities market in the 1990s was gradually monopolized by large European and American banks and investment banks. The number of local brokers gradually dropped from nearly 1,000 at the peak of the "Four Meetings" to less than 400 at that time, and the transaction share also dropped from more than 90% to less than 30%.

The Hong Kong stock market bubble in 1973 was the period of Hong Kong's industrial takeoff in the entire 1960s. From 1962 to 1973, Hong Kong's GDP grew at a compound annual rate of 9.4% after excluding inflation.

From 1971 to 1973, many new stocks were listed, including: Cheung Kong, New World Real Estate, Sun Hung Kai Properties, etc. Listed at a face price of one yuan, and the stock price soared 20-30 times after listing, which made investors fascinated. At that time, the mentality was to rather buy real estate stocks than real estate. Although the former was expensive, it was easy to cash out.

Since its peak in 1973, the Hang Seng Index fell to its lowest level of 150 points in December 1974, and then rose all the way.

In 1987, the stock market crash occurred in the United States, and the Hong Kong stock market was also affected. When the US stock market began to fall, some smart speculators sold their futures indexes, which resulted in a snowball effect. The spot market could not bear the pressure of selling, so the stock price fell sharply. Therefore, the Hang Seng Index fell from 3,968 points to 1,876 points in just a few days, a total of 52%.

Li Zhongxin saw the information in his hand that after entering the 1990s, Hong Kong's Hang Seng Index began to develop steadily, from more than 2,700 points in 1990 to more than 10,000 points in 1994, and was in an upward period. In 1995, it remained at around 90,000 points to 10,000 points.
Chapter completed!